A Landlord’s Guide to Buy-to-Let Property

A landlords guide to the buy-to-let property. Buy-to-let investments are a constant feature of the UK property market nationwide. With the potential for significant long-term return on investment, buy-to-let is a popular investment and business opportunity people are pursuing. But what is a buy-to-let property?


Before we get into more detail, it is important to fully understand what buy-to-let is.

In its simplest form, buy-to-let is where an investor buys a property specifically to rent out to tenants, rather than living in the property. It is a very different process to buying a property to own as a home. Owning a buy-to-let property and renting it out effectively means you’re running a small business.


There are two options when purchasing a property to use as a buy-to-let.   You can use cash or take out a buy-to-let mortgage.

Once you have purchased the property, registered as a landlord, and received approval to rent the property out, you can start to earn profit from tenants. Potential profits on your investment fall into two categories:

  1. Rental Yield: the rent you receive from tenants minus any maintenance fees, running costs, or agent fees.
  2. Capital growth: the profit you earn from selling your property for more than you paid for it. The growth in the price of your property is defined by the performance of the property market in general.

It is important to highlight that you will not receive a guaranteed profit from a buy-to-let investment, and the success of your investment is at the mercy of wider market trends and the number of tenants looking for a property. The success of your investment is determined by a cocktail of the work you put in and factors out of your control.


Buy-to-let mortgages are different from the regular home mortgage, they are designed specifically for landlords who are buying a property to rent. There are some similarities between the two, but there are also some key differences. Here are the answers to some common questions.

Who can get a buy-to-let mortgage? Those who…

  • want to invest in property (houses or flats).
  • understand the risks of investing in property.
  • earn £25,000 + a year to get a lender to approve your loan.
  • have a good credit rating.

How do they work?

  • Buy-to-let mortgages often have fees that tend to be much higher.
  • Interest rates are often higher and most mortgages are interest only. This means you don’t pay anything each month. However, by the end of the term, you repay the original loan in full. This is not to say they are not available on a repayment basis.
  • Instead of viewing your salary as the basis for your loan, the lender will view the potential rental income of the property as your primary source. Your annual salary will be considered as a secondary factor. Lenders will typically want the anticipated rental income to meet at least 125%.


In short, there is no universal answer that is applicable nationwide. Finding the best property to invest in for potential returns is determined by several factors under your control. The most important factor is that you choose a property in the right location, so you can attract the ideal tenants for your property.

With years of experience sourcing properties across the North East, NEPI removes this worry from you.  NEPI provides a comprehensive range of services for buy-to-let investments, including mortgage assistance, sourcing, in-house refurbishment, and expert property management to maximize your income. Everything you need for a successful investment is available in one convenient location.


We have a small selection of our buy-to-let opportunities here. However what is shown is a small representative sample, the full range of opportunities available at any one time is likely to be considerably larger. Our stock is constantly changing and so we would encourage you to get in touch – whatever your particular needs, we’re likely to be able to fulfill them


Owning a rental property comes with a set of responsibilities that extend far beyond simply collecting rent. It's imperative to ensure that the property complies with safety standards, providing a secure and habitable environment for your tenants. Regular inspections and maintenance are crucial to address any issues promptly. As a landlord, you'll also be the point of contact for tenant inquiries, addressing their concerns and ensuring a smooth tenancy experience. Being responsive and attentive to your tenants' needs fosters a positive landlord-tenant relationship, which is pivotal for a thriving buy-to-let venture.


Understanding the nuances of property prices and house values is paramount in making sound investment decisions. Market dynamics can significantly impact the potential return on your investment. Keeping a vigilant eye on market trends allows you to identify opportune moments to buy or sell. Consulting with experienced estate agents or property experts can provide invaluable insights into local property markets, helping you make informed choices that align with your investment goals.


Achieving a balance between rental yield and mortgage payments is a cornerstone of a successful buy-to-let investment. Rental yield, which is the income generated from the property relative to its value, is a key indicator of potential profitability. By maximizing rental yield while keeping mortgage payments manageable, you can ensure that your investment remains financially viable. This equilibrium is essential for the long-term sustainability of your buy-to-let venture. It's advisable to periodically review your rental strategy to adapt to changing market conditions and optimize your returns.


Securing a buy-to-let mortgage is a pivotal step in your investment journey. It's imperative to thoroughly explore the array of mortgage deals and rates available in the market. Comparing offers from different lenders can uncover substantial differences in terms, potentially resulting in significant cost savings over the life of the mortgage. Seeking guidance from financial advisors or mortgage brokers with expertise in buy-to-let investments can provide invaluable insights. They can help you navigate the complexities of residential mortgages tailored for rental properties, ensuring you secure the most favorable terms for your investment.

By carefully managing these aspects of your buy-to-let venture, you'll be well-positioned to navigate the dynamic landscape of rental property ownership. Staying informed, proactive, and leveraging expert advice will enable you to maximize the potential returns from your investment while fulfilling your responsibilities as a landlord. This balanced approach sets the foundation for a prosperous and sustainable buy-to-let business.


When choosing the correct property to invest in, it is vital to take into consideration the likelihood of securing a mortgage loan, maintenance costs, and the general running of your property. Property management is an important element of the letting process and you can get some professional help with the management of your buy-to-let property.

Now you’re informed about buy-to-let properties and the potential opportunities available to a prospective landlord looking to invest in the property market. By highlighting key points of potential profit avenues and the strict points needed to obtain a buy-to-let mortgage, hopefully, you’re now more informed and able to easily navigate your future investment plan.



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North East Property Investment Ltd
11 Riverside Studios
Amethyst Rd
Newcastle Upon Tyne
Tyne and Wear

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